Correlation Between JMT Network and Singer Thailand

Can any of the company-specific risk be diversified away by investing in both JMT Network and Singer Thailand at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JMT Network and Singer Thailand into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JMT Network Services and Singer Thailand Public, you can compare the effects of market volatilities on JMT Network and Singer Thailand and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in JMT Network with a short position of Singer Thailand. Check out your portfolio center. Please also check ongoing floating volatility patterns of JMT Network and Singer Thailand.

Diversification Opportunities for JMT Network and Singer Thailand

0.45

Correlation Coefficient

JMT Network  Singer Thailand

Very weak diversification

The 3 months correlation between JMT and Singer is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding JMT Network Services and Singer Thailand Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singer Thailand Public and JMT Network is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on JMT Network Services are associated (or correlated) with Singer Thailand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singer Thailand Public has no effect on the direction of JMT Network i.e., JMT Network and Singer Thailand go up and down completely randomly.

Pair Corralation between JMT Network and Singer Thailand

Assuming the 90 days trading horizon JMT Network Services is expected to generate 0.98 times more return on investment than Singer Thailand. However, JMT Network Services is 1.02 times less risky than Singer Thailand. It trades about 0.07 of its potential returns per unit of risk. Singer Thailand Public is currently generating about 0.0 per unit of risk. If you would invest  1,730  in JMT Network Services on September 4, 2024 and sell it today you would earn a total of  200.00  from holding JMT Network Services or generate 11.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

JMT Network Services  vs.  Singer Thailand Public

JMT Network Services

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JMT Network Services are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, JMT Network disclosed solid returns over the last few months and may actually be approaching a breakup point.

Singer Thailand Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Singer Thailand Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Singer Thailand is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JMT Network and Singer Thailand

The main advantage of trading using opposite JMT Network and Singer Thailand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JMT Network position performs unexpectedly, Singer Thailand can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Singer Thailand will offset losses from the drop in Singer Thailand's long position.

The idea behind JMT Network Services and Singer Thailand Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.